Benchmark BSE Sensex jumped nearly 592 points while Nifty reclaimed the 25,000 level on Monday shares amid a firm trend in global markets.

Stocks that were in focus include names like RIL, which gained 0.047%, HCL Tech, which jumped 1.4%, and HDFC Life, whose shares rose 2.4% on Monday.

Here’s what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.

RIL

The current trading pattern of Reliance Industries‘ share price indicates a period of consolidation within a 15% range, lacking a clear directional bias. Analysis of the price action reveals a fair value area between 2810-2705, serving as a demand zone. The share price is currently below its 200 daily MA( moving average), necessitating the sustained maintenance of the mentioned support zone on a closing basis to mitigate potential losses.The impending quarterly results announcement by this heavyweight Nifty constituent is expected to influence the stock’s movement. Despite the current favorable risk-to-reward ratio, caution is advised due to relatively weak relative strength compared to the Nifty50, EPS strength, buyer demand, and less favorable technical indicators.

Therefore, it is recommended to refrain from purchasing the stock and await confirmation of the price action reclaiming its 200 daily MA, which now acts as immediate overhead resistance near 2912.

HCL Tech

The stock of HCL Tech is exhibiting strong market leadership characteristics, as evidenced by robust price action and an improving relative strength compared to Nifty50. A pattern analysis on the daily timeframe reveals a bullish breakout from a mini-rounding pattern formed above the primary accumulation pattern, suggesting potential further accumulation.

The stock’s relative strength compared to Nifty50 is improving, and volatility is at lower levels, reducing the likelihood of erratic movements. Additionally, the relative strength index across daily and higher time frames is trading well above their medians, indicating momentum in price. Notably, the company is poised to announce its quarterly earnings, and a positive commentary is expected to reinforce the upward trend.

The price action has immediate support in the 1810-1790 zone, where the 20 DMA is also trading, expected to provide immediate support. Sustaining above this zone will likely attract further bullish momentum. Our recommendation is to purchase HCL Tech with a target price of 2040 and maintain a stop loss at 1766.

HDFC Life

The HDFC Life share recently experienced a period of profit booking, retracing nearly 9% after a 49% increase from the lows of June 2024. This suggests that existing investors are committed to the stock, limiting the downward movement. Analysis of the daily timeframe indicates a bullish breakout from a double-bottom pattern, signaling a potential trend reversal.

The stock has shown improved relative strength compared to Nifty50 and reduced volatility over the past 50 days, which is a positive development. The relative strength index across daily and higher time frames suggests momentum in the price, and there has been an improvement in EPS strength, indicating positive fundamentals.

With 50 DMA as immediate support, the stock presents a favorable risk-to-reward opportunity. We recommend buying the stock with a target price of 820 and maintaining a stop loss at 703.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)